Rent Discount Included Unenforceable Late Charge

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Under tenant's lease, the legal regulated rent was $2,999, but tenant was charged a monthly preferential rent of $1,956 if rent was paid by the 15th of the month. The rent demand listed rent due at over $2,800 per month. The court agreed with tenant that the rent demand was defective and dismissed the case. Landlord's rent discount scheme was unenforceable and was an unconscionable late charge and penalty disproportionate to reasonable damages for late rent payments.

4Life Realty LLC v. Johnson: Index No. 71105/17, NYLJ No. 1521230866 (Civ. Ct. Queens; 3/2/18; Nembhard, J)